THE LANTERN COMMUNITY COMPANY NUMBER: 03773749 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Page I
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 INTRODUCTION The Trustees present their report and the audited financial ststements for the year ended 31 March 2024. This includes the Directors. Report and Slrategic Report as required by Company Law. The legal and administrative infomiation set out below forms part of this reporL The financial statements comply with current statutory requirements. the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their account5 in accordance with the Financial RepK)rting Standard applicable in the UK and Republic of Ireland {FRS102) {effecb've 1 January 2022). REFERENCE AND ADMINISTRATIVE DETAILS The organisation is a charitable company limited by guarantee, incorporated on 20 May 1999 and registered as a charity on 4 June 1999 The chartty changed its name on 5 December 2012 from The Lantern Retreat to The Lantem Community. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. REGISTERED COMPANY NUMBER: 3773749 REGISTERED CHARITY NUMBER: PRINCIPAL ADDRESS AND REGISTERED OFFICE 1075845 The Lantern Centre, Folly Farm Lane, Ashley, Ringwo)d, Hampshire BH24 2NN TRUSTEESIDIRECTORS during the year and to date- Liz Bord Michael Bradshaw Luigi Camelli Alan Hollands resigned 30 September 2023 Neil Hollands lan Humphries Chair until Autumn 2025 Mark Loveys - resigned 12 September 2013 Loraine Morgan Immanuel Verhoeven- appointed 21 October 2023 Maria Verhoeven David Walker All Trustees are elected by the charity's membership or appointed by the Trustees to fill any interim vacancies. in accordance with the Charity's Articles of Association. In such cases those Trustees are required to offer themselves for re-election at the next following AGM. One (2023: T) such appointment has been made since the last AGM. Page 2
THE LANTERN COMMUNITY {Company limited by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 KEY MANAGEMENT PERSONNEL: Senior managers B.Bilge Hunt Carol Cheeseman Jason Gonsalves Vell Cattaree Burga Liddiard Robert van Turenhout Claudiu Deliu Chief Executive Officer/ Nominated Individual - Operations Manager Estate and Maintenance Manager Day Services Manager - Registered Manager Four Meadows Finance Manager Registered Manager Phoenix LEGAL ADVISORS: Pitmans 46 The Avenue, Southampton S017 1AX BANKERS: National Weskninster Bank plc 11 High Street, Ringwood, Hampshire BH24 18A AUDITORS: Knight Goodhead Ltd 7 Bournemouth Rd, Chandler's Ford Eastleigh S053 3DA Page 3
THE LANTERN COMMUNITY (Company limited by guarantee and not having a sharn capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT GOVERNING DOCUMENT The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association. This document was amended by special resolutions on 30 April 2007, 19 November 2012. 29 August 2014 and 28 September 2019. APPOINTMENT AND TRAINING OF THE TRUSTEES There must be at least five Trustees at any time and no more than two may be co-workers. Trustees shall be proposed for appointment by the existing Trustees. The Board seeks to have Trustees with a range of competencies and backgrounds, to allow it to effectively fulfill its role. An induction pack is provided for all Trustees and specialist training is carried out on topics such as governan from time to time as required. MEMBERS Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2024 was 131 (2023.. 126). GOVERNANCE OF THE CHARITY The Trustees recognise their ultimate responsibility for direcling the affairs of The Lantern Communty and for ensuring that it is solvent. well-run, and delivering the charitable outcomes for the benefit of the public for which it has been set up. The Trustees meet together at least quarterly to review Teports from management and to discuss matters such as the strategic direction of The Lantern Community, governance issues and certain financial matters. A number of Committees and Working Groups have been established to ensure that these matters can be properly addressed. These committees are seen as part of the on-going structure of the community and membership consists of Trustees and members of the Lantern Management Group. A pattern of at least four meetings each year has been established. The dates for these four meetings are fixed well in advanc& so that reports can be considered by Trustees prior to Trustee Board meetings. Page 4
THE LANTERN COMMUNITY {Company limlted by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES Charitable Ob'ects Under the Memorandum and Articles of Association adopted on 29 Augusl 2014. the objects of the charity are as follows: To relieve sickness, promote good health. provide care to and advance the education and training of people with a disability (whether mental or physical), the young, the old, or people otherwise in need. in accordance with the principles of Dr Rudolf Steiner, particularty (without limitation) by the establishment and maintenance of intentional communities in the form of villages, residential houses. day ntres. kindergartens. schools, colleges or other types of social and l or educational community in which beneficiarS live and l or work and l or to which they otherwise resort. in community with persons providing supwrt (known as 'Co-workers'). We have referred to the guidance contained in the Charity CommisSn'S general guidanGe on public benefrt when reviewing our aims and objectives and in planning our future objectives. In particular the Trustees consider how planned activities will contribute to the aims and objectives they have set. Activities The provision of housing for its beneficiaries who choose lo live within a social and therapeutic community. The Lantern Community consists of eleven houses for beneficiaries, all with easy access to the town of Ringwood in Hampshire. The Lantern Community continues to include the tenants of Tawa (which belongs lo the Oliver Trust) within its full lrfe and provides Ca and support to them in their own home. There is a residential population of seventy-five people in the Lantern Community in Ringwood (including Tawa). Fifty-0 are adults with leaming disats"lities who hold their own tenancies. seventeen afe short temi volunteer workers, three are long temi Co-workers and three are retired long term Co-workers. The provision of personal care seNices to meet the care needs of beneficiaries. The Lantern Communty offers Personal Care services to people who Ive in or near the Lantern Community Estate or who use the Day Services on the estate The Lantern Communtty has a certrficate of registration with the Care Quality Commission (CQCI for the regulated activity 'personal care.. The Lantem Community as a service provider has two registered locations. The provision of support services to assist in developing the beneficiaries. independence and enabling them to maintain their tenancy. The Lantem Community works closely with East Boro Housing Trust who continue to provide expertise in managing tenancies and related matters. Another link to exiemal expertise is maintained with Worknest (formerly known as Ellis Whittam) providing advi on employment law. HR and health and safety in an unlimited support agreement covering these important areas. The provision of Day Services which create opportunities for work experience, lrfelong learning, artistic and educational development. The work and training facilities are Estate Work, Pottery, Art Studios, Weaving, Seasonal Crafts. H(Yne Making Skills. Café. Bakery, Gift Shop and Horticultural Nursery, many of these selling products to the general public. Page 5
THE LANTERN COMMUNITY (Company limlted by guarantee and not having a share capltal) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES - continued Ob'ectives To provide a range of accommodation, workshops and social settings. staffed by highly motNated employees and volunteers able to support adults who have learning disabilities. To provide opportunities for adults with learning disabilities to meet and interact with a wide range of people within the security of The Lantem Community and to develop the skills to engage with the wider community. To support people to build relationships and develop their Confiden so that they can take a full and active role in society. To extend and develop the range and quality of the services offered in direct response to the needs of those adults with a learning disability. In the year, we have maintained the number of companions residing in the community at 52 with one vacancy in one of our houses We have had several interviews and working visits for the vacancy and we have found a suitsble candidate vtho Joined us after the year under review. After a long break due to outbreaks of covid and infection control measures. we at last opened our shop and café to the public in May 2023. We are pleased to report that the re-opening has been very well received by our visiting customers. MO Companion activities have resumed. and volunteers have returned to the Community. This year, our main focus has been the changing needs of our companions. sin the pandemic, there have been some health concerns as well as aging-related challenges among the companions. This has led us to adopt a more flexible and person-centred approach to meet the ever<hanging needs of the companions. We continue to invest in our staff with training to equip thern with the right skills to be able to support the companions. In this venture. we still have a long journey in front of us as the needs of the companions are changing rapidly and becoming more complex in regard to their health challenges. Thankfully we have received good support from our partners and from our colleagues in Dorset council with their multi-disciplinary teams able to support our companions. This valuable assistance has helped our companions and also given our staff reassurance that they are not alone in their endeavours. The new Healthy Living workshop has been a great success as it is very popular and it is also helping us to lose weight and gain some agility lost during the long covid years. Despite this we still have ongoing concerns about some companions, healthy living and eating hats'ts. To tackle this. beside the healthy living workshop, we have offered 1..1 session5 for some of our companions who are in need of this additional 5UPPOrt. A5 to be expected this 15 a slow-going process as the outcomes take longer to achieve with lifelong habits and aging. We have also intrtxluced another workshop, Spinnery, to our day services provision. Spinnery offers a calm and serene environment for our companions who may need to have a slower pace in their daily lives. To prepare the workforce in the workshops, to meet the changing needs of the Companions. we have introduced. even though there is no statutory requirement, Care Certificate training for new workshop staff members. This development has been embraced by the new staff. particularty as it can be classified as Continued Professional Development ICPD). This initiative created additional costs for the Community but we believe it is necessary so at to provide a safe and Caring environment for the Community. Page 6
THE LANTERN COMMUNITY {Company limited by guarantee and not havlng a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES - continued ectives- continued Following the pandem ic the main strategy has been to support the Companions to get moving in the Community with various activities introduced to support this. This initiative has been welcomed by all. Our maintenance team had a busy year which resulted in a new Land workshop building being constructed near the Art workshop. This additional building has enabled our Pottery workshop to expand its size and level of activity. The green gym, which is made up of four pieces of equipment, has been installed and is proving lo be popular. A new appointment to the Estates team had been made and the role includes assisting the Landscape Workshop. We have carried on with routine and planned maintenance across Ihe ccynmunity so we are able to provKle a safe and good qualty living environment for our beneficiaries and staff. We have also reviewed our 3-year Estate and Maintenance plans and decided to undertake a number of upgrades to some of our houses for mobility needs and ease for care. Currently some houses have en-suite facilities however in most houses companions have to share bathroom and toilet facilities. The main aim of this exercise is to improve the quality of life for everyone who reside in the community. Trustees and management are determined to achieve this objective in the coming years. ACHIEVEMENTS AND PERFORMANCE Challenges around staff retention and recruitment continued during the year under review. In response, OUT Trustee board, having carefully reviewed the current economic situation as well as the charity's resources agreed unanimously to award another significant pay increase for all staff with effective from 1 December 2023. This followed two significant increases in pay rates which were implemented with effect from 1 st April 2023 and then again on 1st December 2013. In order to diversify and increase our recruitment options, V applied for, and were awarded Skilled Worker sponsorship status which means we are now ale to recruit from abroad if the candidates fu11 our requirements. We have managed to have a full complement of co-workers this year" a number of GTrworkers from this year have chosen to stay in the community for longer under the above Skilled Worker sponsorship scheme. Some staff have experienced burn out and work-related stress following the difficulties of working during the Covid pandemic. To support our workforce a Staff Wellbeing programme'marching into Wellbeing. was launched during the month of March 2023. Managers also held face-to-face information sharing sessions with different teams on this well-being offering and other solutions available in our community. localty and nationally. Sessions on mindfulness, nutrition, and healthy lifestyle also took place in our community during the period of the project. Following the pandemic we started celebrating our festivals again without isolation requirements and restrictions during the year,. coming together as a comrnunity once again was renovating and exciting. Our Winter Fayre was again a huge success and we participated in the local Ringwood carnival where we achieved second place in our category. We continue to review and update our IT nelwork on site to ensure we continue to be as safe from a cyber-attack as possible. We believe we have future proofed our IT arrangements for the coming years by investing in the infrastructure. Page 7
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capltal> TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE - continued A new cloud-based rola system has been implemented which should mean a large increase in efficiencies. Difficulties in establishing a timeframe for the remedial works to the pottery and art building has bn demoralising for all of us in the community and il has also made long term planning for other building projects very challenging. With generous support from our donors, have begun the planning process for our new creattve art centre prqect which is to be called the YC Chan Craft Centre. We hope to submit our planning application to the local authorities in the next few months_ The Board asked the Strategy Working group to revisit our strategy and strategic objectives. The review included both external and intemal factors as well as our strenglh5 and weaknesses in relation to future challenges. A SWOT (strengths, weaknesses, opportunikn'es and threats) analysis has also been completed. It was recommended that our strategy should be to focus on maintaining our CQC rating of good. work on staff recruitment and retention, invest in technology, ensure buildings were fit for the future, continue grow income, reduce our carbon footprint, grow awareness in local community and make more use of space on the estate. Strategic Plans were to be developed to look at potential for all these areas. Following several years of debating the issue, and following many years of low interest rates, the Board decided that an investment strategy needed to be formulated for the Community. The Board recognised that a long-term investment strategy was needed for the charty's reserves as well as for our restricted funding. Following a comprehensive review, and after being shortlisted from three possible providers, the Trustee Board appointed RBC Brewin Dolphin to manage the investing of the charity's reserves. Plans for the coming year Ensure our care provision maintains a CQC rats'ng of'Good' as a minimum. We will continue wilh the current strategy of integrab'ng the ageing companions and retired co-workers in the community. We will strive to meet the needs of our changing population. We will aim to meet the changing needs of people with diverse abilities who approach us. To do this we will adapt some of our workshops for those who may wish to have a slower pace of life in their old age or try something different. We will fill the vacancies in residential and reach full capacity. We will continue to make sure all of our beneficiaries live in accommodation that is frt for Purpose and in good condition. We will endeavour to reach a resolution regarding the dispute about the Art and Pottery building. We aim to start building a new creative art centre in the budgel year 2024-2025 and complete it by the end of our 2025-26 budget year. Following the completion of the creative art centre. we will complete the essential upgrading of the other premises as well as landscaping around the new building. Ensure staff are equipped to care for Companions with demenb"a. Improve staff and volunteer recruitment and retention. Invest in technology to improve our effectiveness and efficiency. Pursue growth in income, by increasing.. Donations, fundraising and legacies. Café and shop income. Number of workshops and day placements. Page 8
THE LANTERN COMMUNITY (Company Ilmlted by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 MEDIUM TERM PLANS We will persevere to work with our organisation values to maintsin the ethos arKI the fabric of an intentional community. Develop scenario plans to evaluate the wtential increase in staffing costs if the number of ctrworker falls. Develop a long-lerm staff and volunteer recruitment and retention strategy and plan. to include: Apprenticeships. Disability friendly employer. Number and roles of Volunteers. staff training and development. Develop a long-term plan for making our buildings and accOmmation 'frt for the future,, to include: Modemise Companion accommodation. Pottery and New Building. including space for increasing workshops. Evaluate the potential for future acquisitions. Continue to develop the plan to make better use of our estste. Donations, fundraising and legacies. Café and shop income. Number of workshops and day placements. . Develop a plan to reduce our Carbon footprint yearn-Year. Develop a plan to build awareness in the local community. PAY POLICY FOR SENIORAND OTHER STAFF Due lo a national scarcity of care staff, and expectstions of a significant increase in the rate of inflation, and also as a sign of appreciation for their commitment and resilience during the difficult times, all our staff were awarded a significant pay increase of 10.0°k, effethve from April 1st 2024, and an additional 5.20k effective from 1st December 2024. Subject to the above variation from our usual policy, the Senior Managers are all on an approved pay scale based on the NJC (Nation81 Joint Council) Pay Scales. All these posts cover a range of 3 - 6 spinal points on the NJC Scale. The individual managers have been appointed to a point within the range commensurate with their qualifications and experience. For the Chief Executive Officer progression wthin the nge is automatic but for the other senior managers there is a "barf, at the mid- point and progression above the "bar" is dependent on performance and qualrfication. Future senior staff appointments will be made in a similar way. In normal circumstances pay rises will be in line with those agreed as part of the NJC Pay Scale agreement. Consideration will be given on an annual basis to the appropriateness of the NJC Pay Scales and whether any changes in the structure of community require reconsideration of the pay scale approved by the Board of The Lantern Community. Page 9
THE LANTERN COMMUNITY {Company Ilmlted by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT RISK MANAGEMENT The Trustees have established a process for reviewing the key risks facing the charity and for ensuring that actions are taken to manage those risks. A detailed Risk Register is maintained. Individual risks are reviewed by the appropriate committee and the results rep)rted to the Board of Trustees. The Trustees have given consideration to the major risks to which the charity is exposed and are satisfied that systsms and predureS are in place to manage those risks or that action is being tsken to establish such systems and procedures. The two principal risk areas are.. erational Risk Craft Centre: As previously reported a number of building and design faults have been identified in one of Ihe craft centre buildings (pottery and art} We are in a pre- action protocol with the architect, who also acted as the project administrator, as well as the company which carried out the construction works. We have appointed lawyers to represent us and have also appointed court approved Expert Witnesses to clarify the problems with the building (Please see notes 12 and 13 in the notes to these accounts). Another operational risk that The Lantem Community needs to take into account in the coming years is Ihe continuing negative impact of Brexit on the recrurtment of volunteers, in particular on the numbers of co-workers. The Lantem community, in common wth most Camphill Communities is very reliant on residential vc4unteers for cultural enrichmenulife sharing. A reduction in voluntary co-workers, because of difficulties in obtaining visas, would mean losing a very important aspect of community lrfe. The Lantern Community is working with other communities in creats'ng an awareness and lobbying about the importance of having co-workers in Camphill communities. Thankfully our recent application to the UK Home Office to increase the annual number of visas we can issue from 10 to 30 has been approvwj. We also applied for, and were awarded, Skilled Worker sponsorship status which means we are now able lo recruit from abroad if the candidates fulfil our requirements. Covid-19 The Trustees have considered Ihe financial position of the charity and the potential impact of Covid-19. As most of our contract income is paid for by the UK Socal govemmenl sector we ar8 in the relatively fortunate position of not experiencing a decline in our contract revenues. The Trustees believe the short to medium term impact on liquidity will not affect the ability of the charity to fulfill its aims and commitments. As our income stream is robust and as we have significant free reserves amounting to £2,199,624 or 7.0 months of continuing operations expenditure, we are confident the charity is able to continue fulfilling its objective for at least the short and medium term. However, we cannot exclude the possibility of long term financial impact arising from the Covid-19 pandemic. Finance Risk The Finance Manager has the relevant qualifications and experience to maintain the professional approach in finances. The Lantern Community invested in a good computerised finance system, Advanced Exchequer, which is kept up to date. Quarterly management accounts are produced for management and the Trustee Board. A major tool for the control of operations in The Lantern Community is the annual three-year business plan, the fi'rst year being the budget. The plan contains the major assumptions for all elements of the organisation, including capital expenditure projects, beneficiary and staff numbers. The plan has income and expenditure, balance sheet and cashflow forecasts, allowing a clear framework for future direction. The plans are set prudently and the experience has been that actual results exceed the plan. Page 10
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 FINANCIAL PERFORMANCE Total incoming resources on charitable activities for the year totalled £3.725,873 (2023.. £2,985,672). Of this amount £2,715,661 (2023: £2,209,872), or 72.9¥0 {2023'. 74.OQA), related to care fees mostly paid for by local authorities. In particular, Dorset County Council contributed £1,919,753 (2023.. £1,471,867), or 51. 5 % (2023-. 49.3%), of tolal income from charitable activities. In addition, housing benefit of £557,256 {2023.' £441.662). or 15.0% (2023- l4.8fy), of our total InMe from charitable activities was received from East Dorset District Council on behaff of our companions and long term volunteers. It can be seen that a significant proportion of income comes from local government and that changes in government policy could have a notsble effect on The Lantern Community's financial situation. Relabons with both Dorset County Council and East Dorset District Council remain positive. The Board of Trustees of The Lantern Community continues to measure actual financial performance against budgets at every meeting of the Board. PERFORMANCE CRITERIA- EXTERNAL QUALITY MEASURES There We Health & Safety audits by Worknest (formerly known as Ellis Whittam) and fire risk assessments by Dorset Fire Protection. The Lantern Community considers these external reports and assessments to be helpful and is responsive to proposals or comments made. RESERVES POLICY The Trustees have continued to review the level of reserves held by the charity in line with the guTrdan set out by the Charity Commission. Sufficient reserves need to be available to cover unforeseeable fluctuations in income and cash flow. The Trustees consider that there should be cover for at least approximately six months of expenditure. As at 31 March 2024 General Reserves stood at £2,280,107 (2023: £2.179,621). Of this £80.483 (2023: £86,945) represents non land and buildings tangible fixed assets, leaving free reserves of £2,199,624 (2023.. £2,092.675}. equivalent to 7.0 months of continuing operational expenditure (2023.. 7.6 months). Please also see note 16. The purpose, movements and balances of all the restricted and designated funds are set out in Notes 14 and 15 respectively. The Property Capital Fund can only be realised on disposal of the property and settlement of the related loans. In the coming year the trustees may designate funds for short- and longer-term propety maintenance and alterations. Page 11
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF DIRECTORS. RESPONSIBILITIES The Trustees {who are also the directors of The Lantern Communty for the purposes of company law) are responsible for preparing the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year Under company law Ihe Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to". select suitable accounting policies and apply them consistently, observe the methods and principles in the Charrties SORP- make judgements and estimates that are reasonable and prudent". - state whether applicable UK Accounting Stsndards have been followed, subject to any material departures disdosed and explained in the financial statements., and prepare the financial ststements on the going concern basis unless it is inappropriate to presume that the charitable company will conbnue in business. The Trustees are responsible for keeping adequate accounting records that are sufFicient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial ststements comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence foi taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT OF COMPLIANCE The Trustees believe they have complied with all currently prevailing laws and regulations that apply to Ihe charity and its operations. AUDITORS So far as the Trustees are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their reF)Ort) of which the company's auditors are unaware. Each trustee has taken all the steps that ought to be taken as a trustee in order to make themselves aware of any relevant audit informalion and to establish that the company's auditors are aware of that information. The provision of auditing services was subjected to open competition in 2021. A resolution to appoint Knight Goodhead, who were selected to succeed PKF Francis Clarke as the Lantern Community's auditors, was approved by the charity'5 members in theirAnnual General Meeting which was held on October 2nd 2021. This report has been prepared in accordance with the Companies Act 2006. and complies with the charity's goveming document and Accounting and Reporting by Charities.. Statement of Recommended practi appIable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102) (effective 1 January 2023). The Strategic Report is also hereby approved. Approved by the Trustees and signed on their behalf by lan Humphries (TTUStee).....-.... Date: If July 2024 Page 12
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY OPINION We have audited the financial statements of The Lantem Community (the 'chanty') for the year ended 31 March 2024. which comprise the Statement of Financial Activities, Balance Sheet and Statement of the Cash Flows. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kj'ngdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs a5 at 31 March 2024 and of its results for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounb'ng Practi,. and have been prepared in accordance with the requirements of the Companies Act 2006. This report is made solely to the charitable companls Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Chariws Trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our rep)rt. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial slatements in the UK. including the FRC'S Ethical Stsndard, and we have fulf111ed our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our oplnlon. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have concluded that the Trustees. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material UnrtaIntieS lating to events or conditions that, individually or collectively, may cast significant doubt on the Charity's ability to continue as a going conceffl for a pericMJ of at least Ie1ve months from when the original financial statements were authorised for issue. Our responsibilities and the responsibilities of the Trustees wtth respect to 9)ing concem are described in the relevant sections of this report. The Trustees are reswnsible for the other information. The other informab'on comprises the information included in the Trustees. annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other infomiation and, expt to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Page 13
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY OTHER INFORMATION - continued In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the wort( we have performed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of the audrt: the information given in the Trustees, annual report for Ihe financial year for which the financial statements are prepared is consistent with the financial statements", and The Trustees, annual report has been prepared in accordance with applicable legal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the financial statements. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you rf, in our opinion.. adequate accounting records have not been kept or retums adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns. or certain disclosures of Trustees. remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. As explained more fully in the Statement of responsibilities of Trustees set out on page 11, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees detemiine is necessary to enable the preparation of financial ststements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charivs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. We have been appointed as auditor under the Companies Act 20( and report in accordance wtth the Act and relevant regulations made or having effect thereunder. Page 14
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS RESPONSIBILITIES OF TRUSTEES Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report Ihat includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI will aayS detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identrfy or recognise non-compliance with applicable laws and regulations. We identrfied the laws and regulations applicable to the charitable company through discussions with trustees and other management and we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence. We assessed the susceptibility of the charitable companvs financial statements to material misstatement. induding obtaining an understsnding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and considering the internal controls in place to mitigate risks of fraud and non-complian with laws and regulations. To address the risk of fraud through management bias and override of contro, we performed analytical prccedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with lav and regulations, VR designed procedures which included, but Vre not limited to.. Agreeing financial statement disclosures to underlying supporting documentation,. Reading the minutes of meetings of those charged with govemance" and Enquiring of management as to actual and potential litigats'on and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limrt the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. Page 15
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY A further description of our responsibilities for the audrt of the financial statements is located on the Financial Reporting Council's website at.. https.'IAvww.frc.org.uklauditorsresponsibilities. This description fomis part of our auditorfs report. Knight Gdhead Limited is eligible for appointment as auditor of the charrtable company by virtue of its eloibility for appointment as auditor of 8 company under section 1212 of the Companies Act 2006. USE OF OUR REPORT This report is made solely to the charitable companls Trustees, as a b(MJy, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit Wrk has been undertaken so that we might state to the charivs Trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibilty to anyone other than the charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed. Christopher Goodhead FCA (Senior Ststutory Auditor) For and on behalf of Knight Goodhead Ltd, Chartered Accountants and Statutory Auditor Knight Goodhead Ltd 7 Bournemouth Rd, Chandler's Ford Eastleigh S053 30A Date. e? 7osty- Page 16
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 (including Income and Expenditure Account) Unrestricted Restricted Funds Funds 2024 2023 Total Total Notes Income from: Donations and legacies Charitable activities Investments 15.460 3.725,873 124,822 3,866,155 3,334 18,794 3.725.873 124.822 3,869,489 669,456 2,985,672 29,872 3,685,000 Total income 3.334 Expenditure on: Raising funds Charitable activities 1.935 3.435,215 3.437.150 1.935 3.465.215 3,467,150 2,017 2,803,719 2,805,736 30.000 30,000 Total expenditure Net income Revaluation of properties Exceptional item Net movement in funds Reconciliation of funds". Revaluation reserve brought forward Total funds brought forward Total funds carried forward 429,005 (172,638) (26.666) 402,339 (172,638) 879,264 8116 24 (484,418) 394,846 256.367 (26,666) 229,701 1(fj 14115 2,927,781 8,513,437 11.697,585 2,927,781 10,283,730 13,441.212 2,927,780 9,888.884 13,211,510 1.770,293 1,743,627 14115 All income and expenditure derives from continuing ackn'vities. Page 17
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) BALANCE SHEET AS AT 31 MARCH 2024 Note 2024 2023 Fixed assets Tangible assets Intangible assets 9.421.363 32.846 9,555,614 36,514 Current assets Stocks Debtors Cash at bank and in hand 10 26,960 322,957 4.378,372 4,728,289 (515,289) 19,013 323,026 4,296,659 4,638,698 (571,831) 11 Creditors: amounts falling due within one year Net current assets Total assets less current liabllltles Creditors: amounts falling due after more than one year Net assets 12 4,213,000 13.667,209 {225.997) 13,441,212 4,066,867 13.658,995 {447,485) 13,211,510 13 Charity Funds Restricted Funds General funds Designated funds Revaluation reserve Total charity funds 14 15 1.743,627 2.280.107 6.662.335 2,755,143 13,441,212 1,770,293 2,179,621 6,333,815 2.927.781 13,211,510 15 8116 17 The financial statements were approved and authorised for issue by the Board onlfJuly 2024 Signed on behalf of the Board of Trustees by lan Humphries (Trustee) Date.. ifj Juty 2024 The notes on pages 20 to 35 form part of these financial statements. Company registration number: 03773749 Page 18
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note Cash flow from operating activities Net cash flow from operating activities 22 349,077 349.077 672,693 672.693 Cash flow from investing activities Payments to acquire tangible fixed assets Payments to acquire intangible fixed assets Receipts from sales of tangible fixed assets Interest received Net cash flow from investlng activities (103,095) (33,194) {36,675) 1,177 29,872 (38,820) 15,000 97,872 9.777 Cash flow from flnancing activitbes Repayment of long term loans 13 (263,209) (88,224) Interest paid Net cash flow from financing activities (13,932) (277,141) (17,567) (105,791) Net increase l (decrease) in cash and cash equivalents Cash and cash equivalents at 1 April 2023 Cash and cash equivalents at 31 March 2024 81,713 4.296,659 4,378,372 528,082 3.768,577 4,296,659 Cash and cash equivalents consists of: Cash at bank and in hand 4.378.372 4.378,372 4,296,659 4,296,659 Cash and cash equivalents at 31 March 2024 Page 19
THE LANTERN COMMUNITY (Company limited by guarant and not having a share caprtal) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES IA) GENERAL INFORMATION AND BASIS OF PREPARATION The Lantern Community is an incorporated charity in the United Kingdom. In the event of the charty being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered offe is given in the charity informatK)n on page 2 of these financial statement5. The nature of the charitls operations and principal activities are providing housing, care and support within a S¢xial and therapeutic community. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been ppared in accordance with Accounting and Reporting by Charities-. Statement of Recommended practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Apted Practice as it applies from 1 January 2023. The financial statements are prepared on a going con¢em basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and r¢)unded to the nearest £1. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. IBI FUNDS Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charty for partular purposes. The cost of raising and administering such funds are charged against the specrfic fund. The aim and use of each restricted fund is set out in the mtes to the financial statements. (C) INCOME RECOGNITION All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any perfomiance condits'ons have been met, the amount can be measured reliably and il is probable that the income will be received. For donations to be recognised the charity will have been notified of the amounts and the settlement date in wrib"ng. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fuilled. No amount is included in the financial statements for volunteer time in line with the Statement of Recommended Practice (FRS 1021. Page 20
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (C) INCOME RECOGNITION - continued For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this wint income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. Income from trading activities is generated by supplying goods and services in order to raise funds and is recognised when ents'tlement has occurred. The charily receive5 fees from local government in respect of ServIS and facilities provided. Income from govemment and other grants and fees are recognised at fair value when the charity has entitlement after any performance conditions have been met. it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Investment income is earned through holding assets for investment purw)ses such as deposits. It includes interest income which is CogniSed as the charity's right to re1ve payment is established. (D) EXPENDITURE RECOGNITION All expenditure is accounted for on an accruals basis and has been dassified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be quired and the amount of the obligation can be measured reliably It is categorised under the following headings: Costs of raising funds includes publicty and acfvertising costs incurred in seeking voluntary contributions. They do not include the costs of disseminating information in support of the charitable activitl8S', Expenditure on charitable activities includes the costs of operations directed towards fulfilling the charitable objective.. and Other expenditure represents those items not falling into the categories above. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. The analysis of these costs are included in note 3. (E) GOVERNMENT GRANT INCOME A grant that becomes receivable as compensation for expenses alreajy incurred will be recognised in profit or loss in the same period in which the related expense is incurred. {F) TANGIBLE FIXED ASSETS Tangible fixed assets, except for land and buiildings, are Stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated smpaimient losses. Cost includes costs direclly attributable to making the asset capable of operating as intended. Land and buildings are stated at market value less accumlated impairment losses. Page 21
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 {F) TANGIBLE FIXED ASSETS- continued Depreciation is provided on all tangible fixed assets, except for land and buildings. at rates cakulated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows.. Freehold land Nil- see below Freehold buildings Nil- see below Furniture and Equipment 20% reducing balance Computer Equipmenl 33% reducing balance Motor vehicles 25Vo reducing balance The Lantern Community changed its accounting policy in connection wth Land and buildings in tts financial year 2022123. In previous financial statements an historical cost less depreciation model had been adopted. The effective date of the revaluation in these accounts was on Npril 1 st 2022. A finn of Chartered SuNeyors, authorised by the Royal Insts'tution of Chartered Surveyors (RICS), valued our properties located at our Ringwood campus on July 4 2022, July 5th 2022 and August 17 2023 and the fair values recorded on those dates were used in our 2022123 financial statements. Our property on the Isle of Wight was not valued by a RICS approved surveyor however its fair value has been determined by using a combination of indiS from HM Land Registry as well as comparisons to actual sales of similar local properties. The Lantern Community will appoint RICS approved surveyors to carry out formal valuations every five years with the next valuation expected to occur in our 2027128 financial year. In beeen these 5 yearly formal valuations we will adjust carrying values using property price indiS available from HM Land Registry. ((31 S"TUCK5 Stocks are stated at the lower of cost and estimated selling price less costs to c(plete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and conditK)n. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete, slow- moving or otherwise impaired stock where appropriate. (H) DEBTORS AND CREDITORS RECEIVABLE / PAYABLE WITHIN ONE YEAR Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction pri. Any losses arising from impainnent are recognised in expenditure. (I) LOANS AND BORROWINGS Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, les5 impairment. If an arrangement constitutes a finance transaction it is measured at present value. (J) CONCESSIONARY LOANS Concessionary loans include those received from third parties which are interest free or below market interest rates and are made to advance charitable purposes. Loans repayable on demand within one year are measured at cost. less impainnent. Concessionary loans repayable in over one year are measured at cost as no interest is chargeable. (K) IMPAIRMENT Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Page 22
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 {L) PROVISIONS Provisions are recconised when the charity has an obligation at the balance Sheet date as a result of a past event. it is PTobable that an oufflow of economic benefits will be required in settlement and the amount can be reliably estimated. (M) EMPLOYEE BENEFITS When employees have rendered service to the charity. short-term em 0Yee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. (N) TAX The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purw)ses. (O) GOING CONCERN The financial ststements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the ch8rity to be able to continue as a going concern. As explained in the Trustees report on page10, the Trustees have considered the uncertainty relating to the coronavirus pandemic, which began just before the start of our 2020-21 financial year, and the impact on the charity's operations and finances in the short to medium term. In the opinion of the Twstees, with its robust income stream as well as 7.0 months or £2,199,624 of free reserves and the constant monitoring and control of costs. the charity has sufficient working capital to continue to meet its financial obligations and pay its liabilities as they fall due for the foresee8ble future and therefore the financial ststements have been prepared on a going concern basis. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves held for the charity to be able to contsnue as a going concern. IP) INTANGIBLE ASSErs Intangible fixed assets are stated at cost less accumulated depreciats'on and accumulated impaimient losses. The estimated useful life is 10 years and amortisation is charged to the profit and loss account on a straight line basis IQI JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The following judgements (apart from those involving estimates) have been made in the process of applying the at)ove accounting policies that have had the most significant effect on amounts recognised in the financial statents.. Page 23
THE LANTERN COMMUNITY (Comp8ny limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 (Q) JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY- continued The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a signifant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include.. The amounts set aside for designated funds to cover future costs. 2 INCOME Residential Workshops Internal sales ellmlnated Total 2024 Total 2023 DONATIONS AND LEGACIES Donations, legacies and similar incoming resources CHARITABLE ACTIVITIES Fees and contributions - local authorities l other sour 18.794 18,794 669,456 2,165,450 514.726 308,001 550.211 2,715,661 514,726 308,001 147,989 39,496 3,725,873 2,209,873 401,689 206,365 121,448 46,297 2,985,672 Rent and Servi charges Ineligible and mobility Shop I café I bakery & olher workshops sales Other income 214,864 457 765.532 (66,875) 39.039 3,027,216 Total incoming resources from charitable activities (66,875) INVESTMENTS Investment income 110.014 110,014 14.808 14,808 124,822 124.822 29,872 29,872 Total investment income TOTAL INCOME 3,156,024 780.340 66.875 3,869,489 3,685,000 TOTAL EXPENDITURE (see note 3) EXCEPTIONAL ITEM (see note 24) NET INCOME FOR THE YEAR (2,572.349) (961,676) 66.875 13,467.150) (2,805,736) 1484,418) 394,846 583,675 181.336) 402,339 Income from donations and legacies was £18,793 {2023 - £669,456) of Nyhich £3,333 (2023 - £650,013) was attributable to restricted (Note 14) and £15,480 (2023 - £19.443) was attributsble to unrestricted funds (note 15). Page 24
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 3 EXPENDITURE Residential Workshops Internal sales eliminated Total 2024 Total 2023 RAISING FUNDS Fundraising and publicity CHARITABLE ACTIVITIES 1,659 276 1,935 2,017 Employed staff costs Co-worker costs 1,703,033 97,870 241,831 20,626 562,755 7,500 193,321 4,729 2,265,788 105,370 435,152 25,355 2,032,511 103,999 262,949 40,920 (224.476) 109,347 1,300 18,863 187,580 143,057 Premises costs Depreciation - owned assets Write back of provision for repairs to Pottery building (see note 12) Office and administration 118,864 3,778 13,597 266,748 18,816 137,680 3,778 13,597 213,719 153,363 Medical costs Garden and estate Food. household and cleaning Cost of sales Hotel recreational costs 2,443 164,766 (55,472) (11,403) Motor and travel expenses Legal and professional fees Bank charges Loan interest 37,954 31,739 2,912 12,995 320 2.425 10 38.274 34,164 2,922 12,995 39,498 34,817 3,132 17,949 (Profit) l Loss on sale of fixed assets Sundry expenses Audit and awountancy Trustee Board costs 4,392 9,724 4,628 2,570,691 2,113 2,201 6,505 11,925 4,628 3,465,215 19,741 9,093 3,439 2,803,719 Total resources expended on charitable actlvlties 961.399 (66,875) TOTAL EXPENDITURE FOR THE YEAR 2,572.3SO 961.675 (66.875) 3,467,150 2,805,736 £30,000 (2023 - £30,000) of the above costs were attributable to restricted funds (Note 14). £3.437,150 (2023 - £2.775.736) of the at)ove costs were attribulable to unrestricted funds (Note 15). Page 25
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 4 DEFERRED INCOME During the year payments in advance of £74,819 (2023.. £43,333) were reiVed and have been treated as deferred income as they relate to the next financial year, and are included within other creditors. 5 EMPLOYED STAFF COSTS AND NUMBERS During the year, no Trustees were reimbursed expenses totslling £NIL {2023- no Trustees, £NIL). No trustee received any remuneration in the current year or prior year other than disclosed in note 18 to the accounts. During the year indemnity insurance of £1,064 (2023.. £1,064) was paid to cover the Trustees in the event of any misrepresentation of the organisation. Employed staff costs were as follow5: 2024 2023 Salaries and wages Social security costs Pension costs 2,007,173 169,066 51.620 2.227.859 1.800,474 148,575 46,246 1,995,295 No employee earned more than £80,OOQ per annum during this year or the prior year. The average weekly number of employees during the year was as follows.. 2024 No. 2023 No. Lantern Residential and Workshops 98 98 The employee benefits of key management personnel for the year ended 31 March 2024 was £345,820 (2023.. £307,063). A list of key management personnel may be found on page 3 of this document. 6 TAXATION The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 7 AUDITORS REMUNERATION 2024 2023 Fees payable to the charity's auditor for the audit of the charity's annual accounts 11,055 8,745 Fees payable to the charity's auditor for other SerVis.. 869 348 VAT consultancy services provided by the charity's auditor VAT consultancy costs are included in legal and professional fees in note 3. Page 26
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capttal) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 8 TANGIBLE FIXED ASSETS Freehold land Assets under Furniture & Computer & buildings construction equipment equipment Motor vehicles Total COST OR VALUATION At 1 April 2023 Addits'ons in the year Revaluation to market value (see note 16) Disposals in the year At 31 March 2024 9.462,285 73,466 (204.262) 6,382 9,391 (6,382) 145,297 8.653 33,633 142,559 11.585 9,790,156 103,095 (210,6441 {19,0581 9,663.549 (19,058) 135.086 9.331.489 9.391 153.950 33,633 DEPRECIATION At 1 April 2023 Charge for the year Disposals in the year At 31 March 2024 92.679 19.951 121.912 234,542 21,688 114,0441 242,186 11,283 4,524 5,881 (14,044) 113,749 103,962 24,475 NET BOOK VALUE At 31 March 2024 9,331,489 9,391 49,988 9,158 21.337 9,421,363 At 31 March 2023 9,462.285 6.382 52,618 13.682 20.647 9,555,614 If land and buildings were measured at their historical cost the carrying amounts in these accounts would have been £7,1%9,785 (2023 - £6,920,300), being cost £7,069,785 (2023 - £6,916,319) and accumulated depreciation £NIL12023 - £NIL). The closing balance of £9,391 in Assets under Construction relates entirely to costs incurred for a new Creative Arts Centre Please see associated restricted and unrestricted funds in notes 14 and 15 respectively. As the location and design of the new Creative Arts Centre had both changed significantly a review has been carried out of money spent before the decisions had been made to change the design and location of the building. Following the review it was determined Ihat £6,382 (2023: £102,602) of expenditure had no value and consequently has been written off to the profit and loss account using free reseNes. Page 27
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 9 INTANG18LE ASSETS 2024 COST OR VALUATION At 1 April 2023 Additions in the year Revaluation to market value Disposals in the year At 31 March 2024 36.675 36,675 DEPRECIATION At 1 April 2023 Charge for the year Disposals in the year At 31 March 2024 161 3,667 3.828 NET BOOK VALUE At 31 March 2024 32,847 At 31 March 2024 36,514 The intangible asset relates to ServIS purchased to confuure and install a Cyber Esssentials certified Local Area NetrNork. 10 STOCK As at 31 March 2024 stock was valued at £26,960 {2023: £19.013) and related to goods for resale in the shop on the Ringwood estste. 11 DEBTORS 2024 2023 Trade debtors Other debtors Prepayments and accrued income 101,239 44,283 177,435 322,957 70,810 50,195 202,021 323,026 Page 28
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 12 CREDITORS: amounts falling due within one year 2024 2023 Bank loans (see note 13) Trade creditors Other creditors Other taxation and social security Accruals Deferred income 47,767 127,173 71,182 54,854 139,494 74.819 515.289 89,488 123,404 67,396 47,849 200,361 43,333 571,831 13 CREDITORS: amounts falling due after more than one year 2024 2023 Unsecured concessionary loan Bank loans 1Tr),000 125,997 225,997 100,000 347.485 447,485 An unsecured concessionary108n has been advanced to The Lantern Community by the family trust of a beneficiary. This loan is for an indefinite term, but can become repayable in certain events such as the beneficiary leaving the charity. In some circumstances it can become repayable on demand. A side agreement was signed in the year ending 31 August 2014, in which it stated that the family trust would not require repayment of this loan before 1 September 2020. A subsequent side agreement has been signed in May 2020, in which it stated that the family trust would not require payment of this loan before 1 septeMr 2025. In 2017 bank loans of £450,000 each were negotiated, secured on Willow ErKI Cottage, Silver Birches and Badger Cottage. One loan is fixed rate at 3.22% for a ten year term and the second had a variable rate of 2% above the Bank of England base rate for a ten year temi. During the year under review the charity repaid to the bank the entire amount outstanding on the variable rale ban. The bank loans are repayable by instalments as follows: 2024 2023 Within 1 year., 47,767 89.488 Belween 1 and 2 years; Between 2 and 5 years", Between 5 and 10 years. 49,328 76.668 93,780 253,705 125,9 347,485 Total bank loans 173,763 436.973 Page 29
THE LANTERN COMMUNITY {Company limited by guarantee and not having a share capttal) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 14 RESTRICTED FUNDS At Incoming Outgoing 1 April 2023 Resources resources At 31 March 2024 Transfers Woodwork workshop YC Chan Craft Centre (formerly Lantern Hall) Support with gym running costs Hillcrest activities In memory of Jose Palau New pergolas For a new vehicle Fundraising by a companion Ukraine war Total restricted funds 1,020 1.646.727 120,000 240 1.945 348 1.020 1,646,727 90,000 240 1,945 348 2,000 1.334 13 1,743.627 (30.000) 2,000 1,334 13 1,770,293 3.334 30,000) woodwo Worf(shop Donations were received and fundraising was undertaken for the purpose of contributing to the costs of a canopy for the woodwork workshop. These funds have not yet been spent. YC Chan Craft Centre (fomerly Lantem Hall) A large number of donations have been received and allocated to the project for a YC Chan Craft Centre at The Lantern Community in Ringwood. Support with gym running costs A donation was received to offset some of the operating costs of the new gym for a period of fNe years. Hillcrest activities A number of donations have been received with the instruction that they be used for activities in Hillcrest, one of the houses in the community. In memory of Jose Palau A day services client named Jose Palau passed away during the year under rewew and donations were subsequently received. The intention is a physical memorial will be procured to preserve the memory of Jose Palau. New Pergolas New pergolas were constructed in the previous financial year and this was supported by a generous £10.LN)O donation from the T.H. Russell Charitable Trust. Ukraine war Donations were collected by a companion to help the citizens of Ukraine. Page 30
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 15 UNRESTRICTED FUNDS At Incoming 1 April 2023 Resources Outgoing resources Transfer8 At 31 March 2024 DESIGNATED FUNDS.. Co-worker retirement Co-worker social fund YC Chan Craft Centre Long term mainlenance Fulure Projects 23,404 37,956 117,967 70,000 80,576 329,903 6.003,912 6,333.815 23.404 32,956 117.967 80,000 96,036 350,363 308,059 6,311,971 308.059 6,662,335 5,000 (10.000) 10,000 15,460 30,460 (10,000) Property capitsl fund Total designated funds 30,460 (10.000) General funds 2.179.621 3,835.695 (3,427,150) 3,866.155 (3.437.150) (308,059) 2,280,107 8,942,441 Total unrestricted funds 8,513,436 General funds The figure of £3,427,150 (2023: £3,250,154) for outgoing resources is made up of £3.437.150 (2023: £2.805.737) of general expenditure. details of which can be found in note 3 of these accounts, and an exceptional item of expenditure of £NIL (2023: £484,418) details of which can be found in note 22 of these accounts. PuoseS ofdesignated funds Cowworker ret1ment fund This is a fund crealed to contribute towards meeting the retirement needs of the co-workers. Co-worker social fund The co-worker social fund has been crealed to finance anticipated future expenditure relating to financial assistan to c(Fworker5, e.g. when they leave The Lantern Community. Bakeryproject fund Up until June 2016 donations from the second hand books scheme were allocated to a fund to contribute to the costs of the planned Bakery project. This project includes major external and internal works and improved access. Page 31
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 15 UNRESTRICTED FUNDS - continued YC Chan Craft Centre See also note 14 above for the YC Chan Craft Centre under restricted funds. Some donations have been received without restricts.ons and have been designated to fund this major project. Other general donations were allocated to this fund up until June 2019. Long temi maintenance A provision of £10,000 per annum is being rnade. Amounts in this fund will be released when a major maintenance task is undertaken. Future Projects fund This fund was created in July 2018. The rationale is to allow donations to be gathered in a general pot and then projects to be proposed for trustee approval, to ensure donated monies are used effectively and expeditiously. Property capit81 fund This fund has been created to reflect the carying value of land & buildings held by the charity. net of bank loans and property related loans outstanding at the balance sheet date. 16 REVALUATION RESERVE 2024 2,927,781 (204.262) 31,624 2.755,143 2023 At 1 April 2023 Revaluation to market value Transferred tostatement of Financial Activies for the year At 31 March 2024 3.309,597 (381.816) 2.927.781 17 ANALYSIS OF NET ASSETS BETWEEN FUNDS AS AT 31 MARCH 2024 Restricted Deslgnated funds funds General Total funds funds Tangible fixed assets Intangible fixed assets Net current assets Rounding Long term liabilities NET ASSETS AS AT 31 MARCH 2024 9,340.880 80,483 32.846 2.166.778 9,421,363 32,846 4,213,000 1.743,627 302.595 (225,997) 9,417,478 (225,997) 13.441.212 1,743,627 2.280.107 Page 32
THE LANTERN COMMUNITY (Companv limited by quarantee and not havinq a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 18 ANALYSIS OF NET ASSETS BEfwEEN FUNDS- conb'nued AS AT 31 MARCH 2023 Restrlcted Designated funds funds General Total funds funds Tangible fixed assets Intsngible fixed 8ssets Net current assets Long term liabilities NET ASSETS AS AT 31 MARCH 2023 9,468.667 86,947 36,514 2,056,160 9,555,614 36,514 4,066,867 (447,485) 13,211,510 1.770,293 240,414 (447,485) 9,261.596 1,770,293 2,179,621 19 RELATED PARTIES The following transactions and relattonships with related parties are of note.. Three family members of M Verhoeven and I Veroeven, who are both Trustees, are employed by The Lantem Community and are remunerated at the same rate as all other employees who are employed in similar roles. Liz Bord, trustee, is also The Lantem Communivs nominated trustee of The Camphill Benevolent Fund (CBF), which makes disbursements to retired co-vmrkers. t)onations by Trustees to The Lantern Community in the year ended 31 March 2024 amounted to £NIL (2023.. £NIL). 20 DONATED SERVICES AND ASSETS In the year ended 31 March 2024 there was no income from donated services and assets (2023: £NIL). 21 DEFINED CONTRIBUTION PENSION SCHEME The company operates a defined contribution pension scheme on beha of its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension commitment for the year under this scheme was £51.588 (2023.. £46,246). Page 33
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 22 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net income for year 402,339 394,846 Interest receivable Interest payable Depreciation and impairment of tangible fixed assets Above impairement offset by reduction in Revaluation Reserv Impaimient of buildings in progress {Profit) I loss on disposal of tangible fixed assets {Increase) I decrease in stock {Increase) I decrease in debtors Increase l (decrease) in creditors Net cash flow from operating activities (124.822) 12,995 229,617 (172,638) 6.382 (9,985) (7.947) 27,020 (13,884) 349,077 (29,872) 17,949 40,920 484,418 (461) (666} {90,*3> {143,479) 672,692 23 OPERATING LEASES Future minimum lease payments per annum under non<ancellable operating leases as at 31 March 2024 2024 2023 Not later than one year Later than one year and not later than five years 9,012 40.568 19,069 18,191 24 EXCEPTIONAL ITEM The entirety of this note relates to the financial year ending on 31st March 2023. As mentioned in note 1(fj The Lantern Community has changed its account'ng policy in connection with Land and buildings. In previous financial statemenls an historical cost less depreciation model had bn adopted. In these and future financjal statements land and buildings will be recorded at their fair value less impaimient losses. As a result of the valuation referred to in note 1 (fj three buildings had a fair value less than their historical cost. As a consequence the impairment, amounting to £381,816, has been Charged to the Charity's Statement of Financial Activiles. Additionally, the Charity had invested £102,602 towards the construction of the YC Chan Craft Centre. As a decision was made to change the location and design of this building the Trustees concluded that the already incurred expenditure had no value and as a Consequen has been charged to the Charity's Statement of Financial Activities. As the items making up the exceptional item both relate to the Charitys land and buildings. in accordance with its policy (please see Note 15) an amount of £484,418 has been charged against the Property Capital Fund. The effect of this transfer means that the exceptional item of £484,418 charged to the Charity's ststement of Financial Activity has no effect on the Charitys free reserves. Page 34
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023 (including Income and Expenditure Account) Unrestricted Restricted Funds Funds 2023 Total 2022 Total Notes Income from: Donations and legacies Charitsble activities Investments Total income 19,443 2,985,672 29,872 3,034,987 650,013 669,456 2,985,672 29,872 3,685,000 38,568 2,809,461 2,145 2,850,175 650.013 Expenditure on: Raising funds Charitable activities Total expenditure 2,017 2,773,719 2.775,736 2,017 2,803,719 2,805,736 167 2,701,446 2,701,613 30.000 30.000 Net income 259,251 620,013 879.264 148,562 Sub-total - Net Income Exceptional item Net movement in funds Reconciliation of funds: Revaluation of properties Transfer of funds Total funds brought forward Total funds carried foThvard 14115 23 259,251 {484.418) (225.167) 620,013 879,264 {484,418) 394.846 148,562 620.013 148,562 1(fj 14115 14115 2,927,780 2,927,780 8.738,604 11.441,217 1.150,280 1.770.293 9,888,884 13,211,510 9,740,322 9,888,884 14115 The above Exceptional Item does not reduce the Charivs free reserves. Please see note 24 of these accounts for more information. All income and expenditure derives from continuing activities. Page 35